The foundational principles and holacracy-based governance framework for the ƒxyz Network

Constitution of the ƒxyz Network

"In a sea of order, seeking knowledge, fairness, efficiency."

In our pursuit of justice, knowledge, and innovation, we establish this Constitution to govern the operations and ethos of the ƒxyz Network through holacracy-based distributed governance.

Article I: Fundamental Principles

Section 1: Core Values

The ƒxyz Network shall be governed by the principles of transparency, fairness, inclusivity, and innovative progress, implemented through self-organizing role-based structures.

Section 2: Network Sovereignty

The ƒxyz Network shall operate as a sovereign entity, where governance is distributed among roles and circles according to both the Holacracy Constitution v5.0 and the mechanisms described herein.

Section 3: Individual Rights

All participants in the ƒxyz Network are entitled to:

Access to network services without undue discrimination
Privacy protections as implemented in network protocols
Fair representation in governance processes through role participation
Protection from arbitrary actions through objection mechanisms
Clear role definitions and accountabilities

Article II: Holacracy-Based Governance Structure

Section 1: Governance Mechanisms

The ƒxyz Network shall be governed through a hybrid combination of:

Holacracy circles and roles: Self-organizing teams with distributed authority
On-chain DAO voting: Token-based governance for major network decisions
Tactical and governance meetings: Regular operational and structural evolution processes
Proposal and objection integration: Structured decision-making processes
Community deliberation forums: Open discussion and tension sensing

Section 2: Role-Based Authority

Authority within the ƒxyz Network flows through defined roles, not individuals:

Purpose: Each role exists to express a specific capacity or achieve defined goals
Domains: Roles have exclusive control over defined assets, processes, or functions
Accountabilities: Ongoing activities that roles commit to managing and enacting
Policies: Special rules that grant or constrain authority within the role

Section 3: Circles and Sub-Circles

The ƒxyz Network is organized into circles that group related roles:

Anchor Circle: The highest-level circle containing the overall network purpose
Sub-Circles: Specialized areas like Technology, Community, Markets, and Governance
Circle Leads: Roles responsible for circle objectives and resource allocation
Rep Links: Representatives ensuring sub-circle perspectives reach super-circles

Section 4: Proposal Process and Integration

Network evolution follows holacracy's Integrative Decision-Making Process:

Tension Sensing: Identifying gaps between current and potential state
Proposal Formation: Creating specific changes to address tensions
Clarifying Questions: Understanding the proposal and underlying tension
Reaction Round: Sharing perspectives without discussion
Objection Round: Identifying reasons the proposal might cause harm
Integration: Amending proposals to resolve valid objections

Section 5: DAO Integration

Token-based governance enhances role-based authority through:

Governance tokens: ƒ(xyz) tokens providing voting rights for major network decisions
Role enhancements: Token stakes can increase role authority for specific accountabilities
Treasury management: Multi-signature controls governed by both roles and token votes
Cross-chain coordination: Token voting enables governance across multiple blockchain networks

Article III: Economic and Network Principles

Section 1: Value Creation and Distribution

The ƒxyz Network shall foster an ecosystem that:

Rewards role-based contributions and value creation
Distributes economic benefits according to role performance and token stakes
Prevents excessive centralization through distributed role authority
Promotes sustainable growth through evolutionary tension processing

Section 2: Incentive Alignment

Economic incentives shall align with holacracy principles:

Role-based rewards: Performance incentives tied to role accountabilities
Circle objectives: Collective incentives for circle-level goal achievement
Network health: Long-term token incentives for overall ecosystem growth
Contribution recognition: Both operational excellence and governance participation

Section 3: Network Governance Economics

Governance token distribution: Fair initial allocation and ongoing earning mechanisms
Role staking: Optional token stakes to enhance role authority
Circle budgets: Resource allocation through role-based budget authority
Treasury governance: Collective management of network resources

Article IV: Technical and Operational Sovereignty

Section 1: Open Standards and Interoperability

The ƒxyz Network shall prioritize:

Open-source governance protocols and role definitions
Interoperability with other holacracy implementations
Technical accessibility through clear interfaces and documentation
Graph-based visualization of organizational structure

Section 2: Security and Privacy

Network security and privacy shall be paramount:

Confidential transactions: ElGamal encryption protecting financial privacy
Role-based access controls: Information access limited by role domains
Multi-signature security: Critical operations require multiple role holders
Privacy-preserving governance: Zero-knowledge proofs for sensitive decisions

Section 3: Resilience and Evolution

The network shall be designed for:

Technical resilience: Distributed infrastructure and redundant systems
Governance resilience: Multiple decision-making pathways and objection integration
Evolutionary adaptation: Continuous organizational structure evolution
Community resilience: Inclusive participation and conflict resolution mechanisms

Article V: Amendment and Evolution

Section 1: Constitutional Amendments

This Constitution may be amended through:

Holacracy governance process: Following proposal and objection integration
DAO supermajority vote: Token-based voting for fundamental changes
Community ratification: Broad stakeholder consensus for major amendments

Section 2: Living Document Principle

This Constitution serves as a living document that evolves alongside:

Network growth: Scaling governance structures as the network expands
Technical development: Adapting to new blockchain and governance technologies
Community needs: Responding to stakeholder feedback and emerging requirements
Holacracy evolution: Incorporating improvements to the holacracy framework

Ratification and Implementation

This Constitution is established by the founding members of the ƒxyz Network and ratified by the initial community of stakeholders. It integrates the proven holacracy framework with innovative DAO mechanisms to create a unique hybrid governance model.

The Constitution becomes effective upon:

Community ratification: Approval by initial stakeholder consensus
Role structure implementation: Deployment of initial circles and roles
Token distribution: Initial governance token allocation
Technical deployment: Smart contract and governance infrastructure launch

Adopted on the ƒxyz Network - January 2025

References:

ƒxyz Network Constitution